EASY

1. Which of the following is not an example of a service concern business?

a. Internet Café
b. Car Factory
c. Banks
d. Law Firm
2. Which of the following is a disadvantage of a cooperative?
a. Unlimited life
b. Limited liability
c. Exempted from taxes and may receive government assistance
d. Restrictions on the transfer of a member’s shares
3. Which form of business organization does not have ease of formation?
a. Sole Proprietorship
b. Partnership
c. Corporation
d. Cooperative
4. Cooperative members patronizing their business gets a _________.
a. Patronage refund
b. Annual bonus
c. Share capital
d. Loss
5. In the accounting cycle, which one is not a part of worksheet preparation?
a. Preparing adjusted trial balance
b. Preparing unadjusted trial balance
c. Posting of adjusting journal entries
d. Posting of journal entries
6. The transaction type that results to an increase and a decrease of asset at the
amount and time is called ______________.
a. Source of Assets
b. Exchange of Assets
c. Use of Assets
d. Exchange of Claims
7. The transaction type that results to a decrease of an asset and a decrease in
liability/capital is called ______________.
a. Source of assets
b. Exchange of assets
c. Use of assets
d. Exchange of claims
8. Which of the following is considered as a business transaction?
a. Salary paid to employees
b. Salary paid to house helper
c. Tuition fees for children
d. Bought supplies for the family
9. Cash – P108,000
Accounts Receivable – P30,000
Allowance for Bad debts – P2,600
Land – P1,000,000
Accounts Payable – P55,000
Notes Payable – P400,500
How much is the capital based on the above information?
a. P680,400
b. P685,600
c. P685,100
d. P679,900
10. Which of the following is a nominal account?
a. Assets
b. Liabilities
c. Expense
d. Equity
 AVERAGE
1. An equipment worth P505,000 was acquired on July 1, 2022 with a salvage value
of P25,000. The equipment is deemed fully depreciated after 8 years. How much
is accumulated depreciation on December 31, 2024?
a. P189,375
b. P150,000
c. P155,000
d. P160,000

2. The following information is available on December 31,2024:

Sales P 1,700,000
Sales Returns and Allowances 55,200
Sales Discount 10,700
Accounts Receivable 12/31/24 333,250
Allowance for Doubtful Accounts 1/1/24 1,820
Assuming that the percentage of uncollectible is 5.5% of Accounts Receivable,
how much is the Doubtful Accounts Expense to be recorded?
a. P14,842.50
b. P16,508.75
c. P20,148.75
d. P18,328.75

3. The following information is available on December 31,2024:

Accounts Receivable 12/31/24 555,000
Allowance for Doubtful Accounts 1/1/24 3,250
Receivables according to their age:
0-30 P368,000 1%
31-60 P85,000 1.5%
61-90 P84,500 2%
91-120 P10,000 3%
Over 120 P7,500 4%
How much is the required Allowance for doubtful accounts based on aging of
Receivables?
a. P3,995
b. P3,250
c. P7,250
d. P7,245
4.
PURCHASE LIST PRICE TERMS PAYMENT
DATE DATE
March 30 P200,000 20%, 5/5, 2/10, Net 20 April 5
February 6 P518,900 30-20, 2/5, 1/15, n45 February 17
June 1 P66,000 N30 June 30
December 4 P301,200 10,5,3/10, n30 December 11
How much savings did the company get by paying early?
a. P13,831.62
b. P18,631.62
c. P15,725.78
d. P6,105.84

5. The building’s carrying value as of December 31, 2024 is P12,101,000. It has

salvage value of P50,000. The building was originally purchased for P15,500,000
and has a useful life of 25 years. How many years is the building depreciated?
a. 6.5 years
b. 6 years
c. 5.5 years
d. 5 years
 DIFFICULT
1. The following information were available:
Inventory, Jan. 1 P 1,800,000
Inventory, Dec. 31 P 2,047,000
Sales P 5,760,000
Sales Returns & Allowances P 30,000
Sales Discount P 15,000
Purchases P 3,600,000
Purchase Discount 0.5% of Purchases
Freight In P 25,000
Operating Expense 40% of Gross Profit
Income tax 20% of Net Income
How much is to be recognized as income after tax?
a. P1,413,000
b. P2,355,000
c. P942,000
d. P1,130,400

2. The following information were available December 31, 2024:

Net Sales P 6,490,000
Cost of Goods Sold 4,360,000
OPEX 1,920,000
J. Capital – 1/1/24 2,780,000
During the year, the owner withdrew cash from the business P180,000. On
January 1, 2025 the owner invested additional P250,000. On December 31,
2024, J. Capital has increased by?
a. P30,000
b. P280,000
c. P3,060,000
d. P2,810,000
3. The following transactions were made during the year:
 Jan 1 - Purchased merchandise on account, P100,000 10%,2/5,1/10, n30,
FOB Shipping Point, Freight Prepaid. Freight paid was P1,500
 Jan 3 – Purchased merchandise on account, P450,000 20-15,1/5, n20,
FOB Shipping Point, Freight Collect, Freight paid was P2,800
 Jan 5 – Purchased merchandise and paid P57,000
 Jan 6 – Paid the purchase on January 1
 Jan 10 – Purchased merchandise on account, P220,000, n30, FOB
Destination, Freight Collect. Freight paid was P1,900
In the books of the buyer, how much is the balance of Accounts Payable after the
January 10, transaction?
a. P617,500
b. P527,830
c. P526,000
d. P527,500

4. Some balances from Anaruus Company’s Trial balance on March 31, 2024 are
as follows:
Accounts Receivable P 216,000
Inventory 521,000
Office Supplies 40,000
Prepaid Insurance 200,000
Building 950,000

Equipment 420,000

The following information are available at year-end:

 Unused Office Supplies, P22,400
 Insurance is good for 10 years and was acquired on January 1, 2024
 Depreciation is at 5% of cost if cost is more than P50,000
 Bad debts expense 2% of Accounts Receivable
 Ending merchandise inventory, P56,700
The company is using Periodic Inventory System. How much is the total
debits/credits in the adjustments column if the company is using Closing entry
method?
a. P153,020
b. P95,420
c. P100,220
d. P110,420
5. The following information were available:
Inventory, Jan. 1 P 800,000
Inventory, Dec. 31 545,000
Sales 960,000
Sales Returns & Allowances 5,000
Sales Discount 11,000
Purchases 500,000
Purchase Discount 8,000
Freight In 15,000
Operating Expense 30% of Gross Profit
Income Tax Expense 36,000
Gain on derecognition of asset measured
at amortized cost 50,000
Gain on property revaluation 32,000
Loss from discontinued operation (60,000)
Loss on translation of foreign operations (25,000)

How much is total income in the Statement of Profit/Loss?

a. P81,400
b. P88,400
c. P113,400
d. P141,400
 TIE BREAKER
1. The following information are available on December 31,2024:
Merchandise Inventory 12/31/2023 P 4,650,000

Net Income after Tax 1,020,000

OPEX 25% of Gross Profit

Income Tax 20% of Net Profit
Net Sales 6,600,000
Net Purchases 2,450,000

How much is Merchandise Inventory on December 31, 2024?

a. P2,200,000
b. P2,000,000
c. P2,300,000
d. P1,900,000

2. The following information were available December 31, 2024:

Net Sales P 9,990,000
Cost of Goods Sold 5,450,000
OPEX 2,120,000
Income Tax 20% of Net Income
J. Capital – 1/1/24 4,900,000
During the year, the owner withdrew cash from the business P200,000. On
December 31, 2024, V. Capital has increased to?
a. P1,936,000
b. P1,736,000
c. P6,636,000
d. P6,436,000
3. GEGEL MO KO COMPANY presented the following on December 31,2024:
Accounts Receivable 1/1/24 850,000
Allowance for Bad debts 1/1/24 3,600
Receivables according to their age:
0-30 P256,000 1%
31-60 P128,500 1.5%
61-90 P89,500 2%
91-120 P20,000 3%
Over 120 P6,000 4%
How much did is the bad debts expense recorded by the company based on
aging of Receivables?
a. P7,117.50
b. P3,617.50
c. P3,517.50
d. P7,245.50

4. A building was acquired for P8,560,000 on January 1, 2021. It has a salvage

value of P150,000 and a useful life of 25 years. On December 31, 2045, how
much is the carrying amount of the building?
a. P0
b. P336,400
c. P350,000
d. P150,000

5. On January 1, 2023, Mr. M. invested the following:

Cash P 1,000,000
Building 2,500,000
Equipment 1,800,000
On January 2, 2023, Mr. M. was planning to invest additional cash of P500,000.
On January 3, 2023, Mr. M. withdrew cash from the business of P10,000.
Upon the initial investment, how much was recorded as M. Capital?
a. P5,290,000
b. P5,300,000
c. P5,800,000
d. P5,790,000